Singapore is introducing major listing reforms to attract more foreign companies to the Singapore Exchange (SGX), following a sharp drop in IPO activity and increased competition from regional markets.
The Monetary Authority of Singapore (MAS) and SGX RegCo have proposed removing the S$30 million profit requirement for Mainboard IPOs and shifting to a more flexible, disclosure-based regime. Only four IPOs were completed in 2024, raising just US$31 million, while Malaysia hosted 46 IPOs raising US$1.5 billion.
The reforms include streamlined prospectus rules, reduced financial reporting obligations and the removal of third-party profit attestations. Companies may also be allowed to engage institutional and accredited investors before filing a prospectus. This will lead to a faster and more efficient listings.
For foreign companies, MAS plans to ease secondary listing requirements for firms already listed on 15 recognized exchanges, including the NYSE, ASX, HKEX, Bursa Malaysia and the London Stock Exchange. This could increase cross-listings by 30% over the next few years, with strong interest expected from Chinese firms in tech, healthcare and green energy.
To support the changes, MAS is offering corporate tax rebates of up to 20% for primary listings and 10% for qualifying secondary offerings, capped at S$6 million. A S$5 billion fund will also invest in SGX-listed stocks to support liquidity and market confidence.
Foreign companies considering a listing in Singapore should review their structures now, ahead of the final rules expected later this year. Public consultation closes June 14.
